Closeout and Liquidation Companies Can Be Great Dollar Store Merchandise

Dollarstores thrive on selling goods at discounted prices. Their USP is offering prices lower than conventional stores and malls. They offer a great option for budget conscious customers. Compared to other stores, dollarstores offer unbelievable prices for goods of daily use.  But the question then arises is how do they manage to survive and even make profits by selling goods at such discounted prices? Having great dollar store merchandise suppliers is key to achieve this.

A recent survey predicts that by 2020 dollarstores would be the preferred shopping option for a majority of the people because no matter what the economic condition is people always want to save money on their purchases. So it makes one wonder how do these stores manage to make any profits at all?

The answer lies in the source from where dollar stores make their purchases. Dollar stores make purchases in bulk. This enables them to procure goods at discounted prices. They can then pass on the benefits to their customers. Purchasing in bulk also minimizes the risks in future. If prices of commodities go up in the near future, since dollarstores have already stacked up their stores, it doesn’t matter to them if the retail prices have gone up or down. They have sufficient stock to tide over the price rise until the time the prices stabilize.

Another source of goods for dollar stores is liquidation companies. Sometimes companies have to go for distress sales. This could be for various reasons ranging from annual stock clearance to filing for bankruptcy. Dollarstores sense an opportunity here for great bargains and make bulk purchases from these companies. Since they receive goods at lower prices than the market, they can sell them at lower prices to their customers but can still make a profit.

Dollarstores have built a strong network of agents, dollar store merchandise suppliers and buyers. All parties of this network share the benefits of bulk supplies, cheaper rates and decent profits. Dollarstores may soon overtake conventional stores and malls in the near future as the biggest component in the retail industry, since people always want to save money and make profits. The sales philosophy employed by dollarstores is simple. Buying in bulk saves cost. This benefit is passed on to the buyers. Lower prices mean more sales resulting in more profits, which can again go back into buying more discounted goods from dollar store merchandise suppliers. Thus it is a chain reaction and the benefits are shared by all parties concerned.